What are the potential risks of installing commercial solar panels?

Installing commercial solar panels is a forward-thinking investment, offering long-term cost savings, reputational enhancement and environmental benefits. However, like any significant investment, it comes with potential risks. These risks include financial, operational, and technical challenges – all of which need to be fully understood and proactively managed to ensure a successful project.

In this short article we summarise the main risks and explain how, in our experience, they can be managed and mitigated.

West Buckland School solar delivered by Eden Sustainable

Financial Risks

• Solar panel systems require a significant upfront investment, which can be a barrier for many businesses. This includes the cost of panels, inverters, batteries (if applicable) and installation.

• Financing options, such as power purchase agreements (PPAs), can help businesses spread or almost eliminate the upfront costs. The PPA financial structure will ensure affordability and alignment with your cash flow.

• Energy prices, weather patterns, and system performance all influence the payback period. Overestimating savings can lead to disappointment. It is best to be prudent with these calculations

• Detailed feasibility studies and conservative financial modelling provide realistic expectations of returns. Using reliable weather data and performance monitoring ensures projections are accurate.

Operational Risks

• Solar panels generally have low maintenance needs, but inverters and other components may require regular servicing or replacement. Unexpected failures can lead to downtime and lost cash savings.

• A comprehensive operations and maintenance (O&M) contract with a professional provider (such as Eden Sustainable) ensures regular system checks, prompt repairs, and maximum uptime. Many installers also offer extended warranties to cover critical components.

• For rooftop installations, accessing the panels for cleaning or repairs can be difficult, especially on large or older buildings.

• Site surveys and structural assessments ensure that access systems, such as walkways or ladders, are incorporated into the design. Remote monitoring tools also allow for efficient fault detection and troubleshooting.

Technical Risks

• Connecting to the local electricity grid may face delays or technical challenges due to grid capacity limits, leading to project delays or restrictions on energy export (which can reduce the financial benefits).

• Early engagement with the Distribution Network Operator (DNO) ensures grid capacity assessments are factored into project timelines. Battery storage can also help manage excess energy production without relying on grid export.

• Solar panels experience a slow decline in efficiency over their lifetime, which could impact long-term energy output.

• Selecting high-quality panels with warranties covering performance degradation provides assurance. Monitoring systems allow for early detection of underperformance, ensuring timely corrective action.

• Solar power generation is weather-dependent, and lower-than-expected sunlight can reduce output, especially in the UK’s variable climate.

• Advanced modelling tools that incorporate long-term weather data help set realistic expectations. Hybrid systems combining solar with batteries can mitigate fluctuations.

Eden's O&M performing an annual inspection for one of our clients

Legal and Compliance Risks

• Securing planning permission or meeting building regulations can delay projects, particularly for heritage or conservation properties.

• Experienced installers handle planning applications and compliance checks, streamlining the process. Early engagement with stakeholders ensures no surprises during implementation.

• Failing to comply with insurer requirements can result in denied claims or uninsured risks, such as fire or roof damage.

• Collaboration with property owners and insurers ensures systems meet all policy terms. This includes proper certification, structural assessments, and the use of approved equipment.

Environmental Risks

• Improper disposal of panels at the end of their lifespan can create environmental concerns.

• Working with manufacturers offering recycling programs ensures panels are disposed of responsibly. Investing in panels with extended lifespans and durability reduces waste over time.

• Ground-mounted solar farms can disrupt local ecosystems if not carefully planned.

• Biodiversity studies and eco-friendly designs, such as wildflower planting around installations, minimise environmental impacts and enhance local habitats.

Take your step to a more sustainable future

Installing commercial solar panels is not a risk-free undertaking. However, the risks are identifiable and manageable with the right expertise and planning.

At Eden Sustainable, we pride ourselves on identifying and addressing these risks early, offering tailored solutions to meet your unique needs. By leveraging high-quality materials, thorough site assessments, and ongoing support, we ensure that your solar investment is not only sustainable but also secure and cost-effective.

When these challenges are approached proactively, solar energy becomes a reliable and rewarding asset for businesses committed to a greener future. Contact us today to learn more about our solar services and how we can help you achieve your sustainability goals.

Contact Us